展品99.1
Reliance, Inc.公布2024年第三季度财务结果
— 净销售额为34.2亿美元，销量比2023年第三季增长7.1%。
— 毛利润率为29.4%
— 每股收益为3.61美元，非依照通用会计原则计算的每股收益为3.64美元
— 来自业务运作的现金流为46390万美元
— 每股$43200万的股票回购，使流通股减少3％；将现有的股票回购计划补充至$15亿
— 修订并重新签订的15亿美元授信协议，为新的五年期
— 于2024年8月16日完成收购FerrouSouth过路加工资产
2024年10月24日，亚利桑那州斯科茨代尔（GLOBE NEWSWIRE）-- 信赖公司（纽交所：RS）今日公布2024年9月30日结束的第三季度财务业绩。
| (以百万为单位，吨为千单位，每吨销售平均价格和每股金额) | |||||||||||||||||||||||||||||
| 连续 季度 | 截至九个月 九月三十日， | 年度- 超过- 年 | 年度- 过- 年 | ||||||||||||||||||||||||||
| Q3 2024* | Q2 2024 | 变化百分比 % | 2024 | 2023 | 变化百分比 % | Q3 2023 | 变化百分比 % | ||||||||||||||||||||||
| 损益表数据: | |||||||||||||||||||||||||||||
| 净销售额 | $ | 3,420.3 | $ | 3,643.3 | (6.1 | %) | $ | 10,708.4 | $ | 11,468.6 | (6.6 | %) | $ | 3,623.0 | (5.6 | %) | |||||||||||||
| 毛利润1 | $ | 1,006.3 | $ | 1,086.0 | (7.3 | %) | $ | 3,220.5 | $ | 3,525.7 | (8.7 | %) | $ | 1,077.0 | (6.6 | %) | |||||||||||||
| 毛利润率1 | 29.4% | 29.8% | (0.4 | %) | 30.1% | 30.7% | (0.6 | %) | 29.7% | (0.3 | %) | ||||||||||||||||||
| 非GAAP毛利润率1,2 | 29.4% | 29.8% | (0.4 | %) | 30.1% | 30.7% | (0.6 | %) | 29.7% | (0.3 | %) | ||||||||||||||||||
| 后进先出（LIFO）收入 | $ | (50.0 | ) | $ | (50.0 | ) | $ | (150.0 | ) | $ | (105.0 | ) | $ | (45.0 | ) | ||||||||||||||
| 后进先出（LIFO）收入占净销售额的百分比 | (1.5% | ) | (1.4% | ) | (0.1 | %) | (1.4% | ) | (0.9% | ) | (0.5 | %) | (1.2% | ) | (0.3 | %) | |||||||||||||
| 每股稀释股息后LIFO收入，税后净额 | $ | (0.68 | ) | $ | (0.66 | ) | $ | (1.98 | ) | $ | (1.33 | ) | $ | (0.57 | ) | ||||||||||||||
| 非通用会计原则税前费用（收入）调整² | $ | 2.5 | $ | (1.6 | ) | $ | 5.8 | $ | (3.8 | ) | $ | 1.0 | |||||||||||||||||
| 税前收入 | $ | 260.5 | $ | 349.7 | (25.5 | %) | $ | 1,006.4 | $ | 1,407.4 | (28.5 | %) | $ | 388.0 | (32.9 | %) | |||||||||||||
| 非依照通用会计原则前税收入2 | $ | 263.0 | $ | 348.1 | (24.4 | %) | $ | 1,012.2 | $ | 1,403.6 | (27.9 | %) | $ | 389.0 | (32.4 | %) | |||||||||||||
| 税前收入率 | 7.6% | 9.6% | (2.0 | %) | 9.4% | 12.3% | (2.9 | %) | 10.7% | (3.1 | %) | ||||||||||||||||||
| 归属于信实的净利润 | $ | 199.2 | $ | 267.8 | (25.6 | %) | $ | 769.9 | $ | 1,063.2 | (27.6 | %) | $ | 295.0 | (32.5 | %) | |||||||||||||
| 摊薄后每股收益 | $ | 3.61 | $ | 4.67 | (22.7 | %) | $ | 13.55 | $ | 17.92 | (24.4 | %) | $ | 4.99 | (27.7 | %) | |||||||||||||
| 非通用稀释每股收益2 | $ | 3.64 | $ | 4.65 | (21.7 | %) | $ | 13.63 | $ | 17.87 | (23.7 | %) | $ | 5.00 | (27.2 | %) | |||||||||||||
| 资产负债表和现金流数据: | |||||||||||||||||||||||||||||
| 营运活动所提供的现金流量 | $ | 463.9 | $ | 366.3 | 26.6 | % | $ | 956.5 | $ | 1,145.7 | (16.5 | %) | $ | 466.0 | (0.5 | %) | |||||||||||||
| 自由现金流3 | $ | 351.1 | $ | 268.1 | 31.0 | % | $ | 636.8 | $ | 787.1 | (19.1 | %) | $ | 340.5 | 3.1 | % | |||||||||||||
| 净债务/总资本4 | 11.5% | 9.4% | 11.5% | 2.1% | 2.1% | ||||||||||||||||||||||||
| 净债务/息税折旧摊销前利润2,5 | 0.6x | 0.5x | 0.6x | 0.1x | 0.1x | ||||||||||||||||||||||||
| 总债务/息税折旧摊销前利润2,5 | 0.8x | 0.7x | 0.8x | 0.5x | 0.5x | ||||||||||||||||||||||||
| 资本配置数据： | |||||||||||||||||||||||||||||
| 收购净额 | $ | 20.2 | $ | 292.8 | $ | 366.7 | $ | 24.1 | $ | — | |||||||||||||||||||
| 资本支出 | $ | 112.8 | $ | 98.2 | $ | 319.7 | $ | 358.6 | $ | 125.5 | |||||||||||||||||||
| 分红派息 | $ | 60.6 | $ | 62.6 | $ | 188.5 | $ | 179.3 | $ | 58.7 | |||||||||||||||||||
| 股份回购 | $ | 432.0 | $ | 519.3 | $ | 951.3 | $ | 239.2 | $ | 126.4 | |||||||||||||||||||
| 关键业务指标: | |||||||||||||||||||||||||||||
| 销售吨数 | 1,521.4 | 1,553.5 | (2.1 | %) | 4,568.9 | 4,425.0 | 3.3 | % | 1,420.8 | 7.1 | % | ||||||||||||||||||
| 销售吨数 (同店) | 1,465.2 | 1,489.6 | (1.6 | %) | 4,431.2 | 4,412.6 | 0.4 | % | 1,413.6 | 3.7 | % | ||||||||||||||||||
| 每吨销售平均价格 | $ | 2,246 | $ | 2,348 | (4.3 | %) | $ | 2,345 | $ | 2,602 | (9.9 | %) | $ | 2,552 | (12.0 | %) | |||||||||||||
| 每吨销售平均价格 (同店) | $ | 2,266 | $ | 2,376 | (4.6 | %) | $ | 2,365 | $ | 2,604 | (9.2 | %) | $ | 2,557 | (11.4 | %) | |||||||||||||
| * 2024年第3季相较于2023年同期多出一个运输日。 | |||||||||||||||||||||||||||||
| 请查阅本新闻稿末尾的注释，以获得更多资讯。 | |||||||||||||||||||||||||||||
管理层评论
“在第三季度充满挑战的市场环境中，我们的业务继续表现出色，再次在出货量方面优于行业，同时保持了在我们可持续区间内的毛利率，我们将其称为智慧、有利可图的增长，”Reliance的总裁兼首席执行官Karla Lewis表示。 「尽管金属价格下跌幅度超出预期，但我们业务模式内在的韧性，为多元终端市场提供广泛增值加工能力和快速订单，以及增加的成交量，有助于减轻价格水平下降对我们毛利率的影响，并支持每股非通用会计原则盈利3.64美元，符合我们的预测。」
路易斯太太续述说：「在第三季度，我们从营运中产生了46390万的现金流，这主要得益于强劲的盈利能力以及我们在周期市场中有效的营运资本管理。我们持续强劲的现金流继续支援所有关键支柱，执行我们的资本配置策略。我们在资本支出上投资了11280万，其中大部分用于增长活动，并完成了2024年的第四宗收购。我们回购了43200万的公司股票，在股价普遍下滑的金属空间中抓住机会回购了我们的股份，使本季的流通股份减少了近3%。此外，我们支付了6060万的股息，凸显了我们对尊贵股东的承诺。尽管短期内的不确定性对需求和价格带来了阻力，但我们坚韧的业务模式和积极的长期展望支持我们对继续执行我们的战略增长和股东回报优先事项的信心。」
市场评论结束
Reliance向各种不同区间的终端市场提供各种金属制品和增值加工服务，通常以小批量按需提供。公司在2024年第三季度的销售吨数较去年同期增长了7.1%，超出管理层预期的4.5%至6.5%。根据同店营业绩，公司的销售吨数较去年同期增长了3.7%，较2024年第二季度下降了1.6%，反映出由于战略增长努力而较正常季节性趋势稍好。
制造行业的需求（包括基础设施），Reliance最大的终端市场，较2023年第三季度有所改善。Reliance继续在各个不同部门的新建筑项目中提供服务，包括公共基础设施、制造业、数据中心和能源基础设施。公司预计非住宅施工需求在第四季度将保持相对稳定，受到正常季节性因素影响。
Reliance所服务的较广泛制造业板块的需求，与2023年第三季相比有所增强，主要是由于机械制造、军工、造船和铁路等板块相对实力较强。消费品和重型机械股的需求疲弱，部分抵消了其他制造业板块需求的增强。Reliance预计，其产品在较广泛的制造业板块的需求将在2024年第四季经历一般的季节性放缓。
商用航空业的需求与2023年第三季度相比保持稳定。Reliance预计在2024年第四季度会有相对稳定的需求，但会受制于波音劳资停工对建造速度、供应链混乱和价格造成的影响。预计Reliance航太业务中军工和航天相关部分的强劲需求会在2024年第四季度持续。
Demand for the toll processing services Reliance provides to the automotive market increased compared to the third quarter of 2023. The Company expects demand for automotive toll processing to remain stable in the fourth quarter of 2024, subject to normal seasonality.
Demand in the semiconductor market declined compared to the third quarter of 2023. The Company anticipates demand will remain under pressure in the fourth quarter of 2024 due to excess inventory in the supply chain. Reliance’s long-term outlook for the semiconductor market remains positive.
Balance Sheet & Cash Flow
As previously announced on September 10, 2024, Reliance amended and restated its existing $1.5 billion unsecured revolving credit agreement for a new five-year term.
Reliance is positioned to continue operating from a position of financial strength and to continue executing its flexible and opportunistic capital allocation strategy which is focused on both growth and stockholder returns. During the third quarter, Reliance invested $112.8 million in capital expenditures, $23 million for an acquisition, and returned $492.6 million to its stockholders through dividends and opportunistic share repurchases.
At September 30, 2024, Reliance had cash and cash equivalents of $314.6 million and total outstanding debt of $1.28 billion, with $125.0 million outstanding and approximately $1.37 billion available for borrowing under its amended and restated $1.5 billion unsecured revolving credit facility.
Reliance generated cash flow from operations of $463.9 million in the third quarter of 2024.
Stockholder Return Activity
On October 22, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $1.10 per share of common stock, payable on December 6, 2024 to stockholders of record as of November 22, 2024. Reliance has paid regular quarterly cash dividends for 65 consecutive years without reduction or suspension.
In the third quarter of 2024, Reliance repurchased approximately 1.5 million shares of its common stock at an average cost of $281.37 per share, for a total of $432.0 million. On October 22, 2024, the Board of Directors approved an amendment of Reliance’s share repurchase plan, replenishing the repurchase authorization to $1.5 billion without a set expiration date. From 2019 through September 30, 2024, Reliance has repurchased approximately 15.1 million shares of its common stock at an average cost of $183.37 per share for a total of $2.77 billion.
Acquisition
Effective August 16, 2024, with cash on hand, Reliance completed its acquisition of certain toll processing assets of the FerrouSouth division of Ferragon Corporation (“FerrouSouth”), a premier toll processing operation headquartered in Iuka, Mississippi. Net sales for the FerrouSouth toll processing operations for the year ended December 31, 2023 were approximately $15 million.
Business Outlook
Given the significant uncertainty currently surrounding economic policy in the U.S., Reliance anticipates underlying demand will weaken temporarily across the majority of the end markets it serves in the fourth quarter of 2024, recovering as we move into 2025. Due to normal seasonal trends and heightened macroeconomic and political uncertainty, the Company estimates its tons sold will be down 6.0% to 8.0% in the fourth quarter of 2024 compared to the third quarter of 2024 and up 4.0% to 6.0% from the fourth quarter of 2023 with 0.5% to 2.5% attributable to same store growth. Reliance expects its average selling price per ton sold for the fourth quarter of 2024 to be down 1.5% to 3.5% compared to the third quarter of 2024 with continued pricing pressure across carbon steel products. Reliance anticipates its FIFO gross profit margin to stabilize in the fourth quarter of 2024, reflecting better alignment of replacement costs and inventory costs on hand. Based on these expectations, the Company anticipates non-GAAP earnings per diluted share in the range of $2.65 to $2.85 for the fourth quarter of 2024.
Conference Call Details
A conference call and simultaneous webcast to discuss Reliance’s third quarter 2024 financial results and business outlook will be held on Thursday, October 24, 2024 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. To listen to the live call by telephone, please dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International) approximately 10 minutes prior to the start time and use conference ID: 13749249. The call will also be broadcast live over the Internet hosted on the Investors section of the Company's website at investor.reliance.com.
For those unable to participate during the live broadcast, a replay of the call will also be available beginning that same day at 2:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on November 7, 2024, by dialing (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (International) and entering the conference ID: 13749249. The webcast will remain posted on the Investors section of Reliance’s website at reliance.com for 90 days.
About Reliance, Inc.
Founded in 1939, Reliance, Inc. (NYSE: RS) is a leading global diversified metal solutions provider and the largest metals service center company in North America. Through a network of more than 320 locations in 41 states and 12 countries outside of the United States, Reliance provides value-added metals processing services and distributes a full-line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2023, Reliance’s average order size was $3,210, approximately 51% of orders included value-added processing and approximately 40% of orders were delivered within 24 hours. Reliance, Inc.’s press releases and additional information are available on the Company’s website at reliance.com.
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance’s industry and end markets, business strategies, acquisitions, and expectations concerning the Company’s future growth and profitability and its ability to generate industry leading returns for its stockholders, as well as future demand and metals pricing and the Company’s results of operations, margins, profitability, taxes, liquidity, macroeconomic conditions, including inflation and the possibility of an economic recession or slowdown, litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range,” “intend” and “continue,” the negative of these terms, and similar expressions.
These forward-looking statements are based on management's estimates, projections and assumptions as of today’s date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, actions taken by Reliance, as well as developments beyond its control, including, but not limited to, the possibility that the expected benefits of acquisitions may not materialize as expected, the impacts of labor constraints and supply chain disruptions, changes in domestic and worldwide political and economic conditions such as inflation and the possibility of an economic recession that could materially impact the Company, its customers and suppliers, metals pricing, and demand for the Company’s products and services. Deteriorations in economic conditions as a result of inflation, economic recession, slowing growth, outbreaks of infectious disease, conflicts such as the war in Ukraine and the evolving events in Israel and Gaza or otherwise, could lead to a decline in demand for the Company’s products and services and negatively impact its business, and may also impact financial markets and corporate credit markets which could adversely impact the Company’s access to financing, or the terms of any financing. The Company cannot at this time predict all of the impacts of inflation, product price fluctuations, economic recession, outbreaks of infectious disease or the war in Ukraine and the Israel-Gaza conflict and related economic effects, but these factors, individually or in any combination, could have a material adverse effect on the Company’s business, financial position, results of operations and cash flows.
The statements contained in this press release speak only as of the date hereof, and Reliance disclaims any and all obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason, except as may be required by law. Important risks and uncertainties about Reliance’s business can be found in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in other documents Reliance files or furnishes with the United States Securities and Exchange Commission.
CONTACT:
(213) 576-2428
investor@reliance.com
or Addo Investor Relations
(310) 829-5400
(Tables to follow)
| Third Quarter 2024 Major Commodity Metrics | ||||||||||||||||||||||||||||
| Tons Sold (tons in thousands; % change) | Average Selling Price per Ton Sold (% change) | |||||||||||||||||||||||||||
| Q3 2024 | Q2 2024 | Sequential Quarter Change | Q3 2023 | Year- Over-Year Change | Sequential Quarter Change | Year- Over-Year Change | ||||||||||||||||||||||
| Carbon steel | 1,246.9 | 1,274.3 | (2.2 | %) | 1,150.6 | 8.4 | % | (6.4 | %) | (14.2 | %) | |||||||||||||||||
| Aluminum | 80.2 | 81.3 | (1.4 | %) | 78.2 | 2.6 | % | (0.4 | %) | (5.0 | %) | |||||||||||||||||
| Stainless steel | 73.2 | 73.6 | (0.5 | %) | 69.9 | 4.7 | % | (0.9 | %) | (11.9 | %) | |||||||||||||||||
| Alloy | 30.2 | 32.5 | (7.1 | %) | 31.2 | (3.2 | %) | 0.5 | % | (7.7 | %) | |||||||||||||||||
| Sales ($'s in millions; % change) | ||||||||||||||||||||||||||||
| Q3 2024 | Q2 2024 | Sequential Quarter Change | Q3 2023 | Year- Over-Year Change | ||||||||||||||||||||||||
| Carbon steel | $ | 1,856.2 | $ | 2,025.7 | (8.4 | %) | $ | 1,996.9 | (7.0 | %) | ||||||||||||||||||
| Aluminum | $ | 576.3 | $ | 587.8 | (2.0 | %) | $ | 592.6 | (2.8 | %) | ||||||||||||||||||
| Stainless steel | $ | 513.9 | $ | 521.8 | (1.5 | %) | $ | 557.5 | (7.8 | %) | ||||||||||||||||||
| Alloy | $ | 155.9 | $ | 166.8 | (6.5 | %) | $ | 174.4 | (10.6 | %) | ||||||||||||||||||
| Year-to-Date (9 Months) 2024 Major Commodity Metrics | ||||||||||||||||||||||||||||
| Tons Sold (tons in thousands; % change) | Average Selling Price per Ton Sold (% change) | |||||||||||||||||||||||||||
| 2024 | 2023 | Year- Over-Year Change | Year- Over-Year Change | |||||||||||||||||||||||||
| Carbon steel | 3,736.0 | 3,588.3 | 4.1 | % | (9.6 | %) | ||||||||||||||||||||||
| Aluminum | 243.3 | 247.4 | (1.7 | %) | (5.9 | %) | ||||||||||||||||||||||
| Stainless steel | 222.3 | 218.4 | 1.8 | % | (13.8 | %) | ||||||||||||||||||||||
| Alloy | 95.7 | 102.0 | (6.2 | %) | (4.6 | %) | ||||||||||||||||||||||
| Sales ($'s in millions; % change) | ||||||||||||||||||||||||||||
| 2024 | 2023 | Year- Over-Year Change | ||||||||||||||||||||||||||
| Carbon steel | $ | 5,894.8 | $ | 6,266.6 | (5.9 | %) | ||||||||||||||||||||||
| Aluminum | $ | 1,760.2 | $ | 1,902.5 | (7.5 | %) | ||||||||||||||||||||||
| Stainless steel | $ | 1,595.6 | $ | 1,818.8 | (12.3 | %) | ||||||||||||||||||||||
| Alloy | $ | 494.6 | $ | 552.6 | (10.5 | %) | ||||||||||||||||||||||
| Sales by Product ($'s as a % of total sales) | ||||||||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | ||||||||||||||||||||||||||||
| Q3 2024 | Q2 2024 | Q3 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| Carbon steel plate | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||||
| Carbon steel structurals | 12 | % | 11 | % | 11 | % | 11 | % | 11 | % | ||||||||||||||||||
| Carbon steel tubing | 9 | % | 10 | % | 10 | % | 10 | % | 10 | % | ||||||||||||||||||
| Hot-rolled steel sheet & coil | 8 | % | 9 | % | 9 | % | 8 | % | 9 | % | ||||||||||||||||||
| Carbon steel bar | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
| Galvanized steel sheet & coil | 5 | % | 5 | % | 4 | % | 5 | % | 4 | % | ||||||||||||||||||
| Cold-rolled steel sheet & coil | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||||||
| Carbon steel | 53 | % | 54 | % | 53 | % | 53 | % | 53 | % | ||||||||||||||||||
| Aluminum bar & tube | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
| Heat-treated aluminum plate | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
| Common alloy aluminum sheet & coil | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||||
| Common alloy aluminum plate | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||||
| Heat-treated aluminum sheet & coil | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||||
| Aluminum | 16 | % | 16 | % | 16 | % | 16 | % | 16 | % | ||||||||||||||||||
| Stainless steel bar & tube | 7 | % | 7 | % | 7 | % | 7 | % | 7 | % | ||||||||||||||||||
| Stainless steel sheet & coil | 5 | % | 5 | % | 6 | % | 5 | % | 6 | % | ||||||||||||||||||
| Stainless steel plate | 3 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||||||
| Stainless steel | 15 | % | 14 | % | 15 | % | 14 | % | 15 | % | ||||||||||||||||||
| Alloy bar & rod | 3 | % | 3 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||||
| Alloy tube | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||||
| Alloy | 4 | % | 4 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
| Miscellaneous | 6 | % | 6 | % | 5 | % | 6 | % | 5 | % | ||||||||||||||||||
| Toll processing & logistics | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||||
| Copper & brass | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||||||
| Other | 12 | % | 12 | % | 11 | % | 12 | % | 11 | % | ||||||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||
| RELIANCE, INC. | |||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (in millions, except number of shares which are reflected in thousands and per share amounts) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 3,420.3 | $ | 3,623.0 | $ | 10,708.4 | $ | 11,468.6 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of sales (exclusive of depreciation and amortization shown below) | 2,414.0 | 2,546.0 | 7,487.9 | 7,942.9 | |||||||||||
| Warehouse, delivery, selling, general and administrative (“SG&A”) | 665.0 | 626.9 | 2,004.2 | 1,928.8 | |||||||||||
| Depreciation and amortization | 67.9 | 60.6 | 198.1 | 182.5 | |||||||||||
| 3,146.9 | 3,233.5 | 9,690.2 | 10,054.2 | ||||||||||||
| Operating income | 273.4 | 389.5 | 1,018.2 | 1,414.4 | |||||||||||
| Other (income) expense: | |||||||||||||||
| Interest expense | 10.9 | 9.7 | 30.3 | 30.3 | |||||||||||
| Other expense (income), net | 2.0 | (8.2 | ) | (18.5 | ) | (23.3 | ) | ||||||||
| Income before income taxes | 260.5 | 388.0 | 1,006.4 | 1,407.4 | |||||||||||
| Income tax provision | 60.6 | 92.0 | 234.4 | 340.7 | |||||||||||
| Net income | 199.9 | 296.0 | 772.0 | 1,066.7 | |||||||||||
| Less: net income attributable to noncontrolling interests | 0.7 | 1.0 | 2.1 | 3.5 | |||||||||||
| Net income attributable to Reliance | $ | 199.2 | $ | 295.0 | $ | 769.9 | $ | 1,063.2 | |||||||
| Earnings per share attributable to Reliance stockholders: | |||||||||||||||
| Basic | $ | 3.64 | $ | 5.05 | $ | 13.68 | $ | 18.13 | |||||||
| Diluted | $ | 3.61 | $ | 4.99 | $ | 13.55 | $ | 17.92 | |||||||
| Shares used in computing earnings per share: | |||||||||||||||
| Basic | 54,691 | 58,427 | 56,297 | 58,648 | |||||||||||
| Diluted | 55,182 | 59,124 | 56,813 | 59,333 | |||||||||||
| Cash dividends per share | $ | 1.10 | $ | 1.00 | $ | 3.30 | $ | 3.00 | |||||||
| RELIANCE, INC. | ||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in millions, except number of shares which are reflected in thousands and par value) | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023* | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 314.6 | $ | 1,080.2 | ||||
| Accounts receivable, less allowance for credit losses of $26.6 at September 30, 2024 and $24.9 at December 31, 2023 | 1,566.7 | 1,472.4 | ||||||
| Inventories | 2,205.8 | 2,043.2 | ||||||
| Prepaid expenses and other current assets | 123.5 | 140.4 | ||||||
| Income taxes receivable | 1.9 | 35.6 | ||||||
| Total current assets | 4,212.5 | 4,771.8 | ||||||
| Property, plant and equipment: | ||||||||
| Land | 294.3 | 281.7 | ||||||
| Buildings | 1,648.1 | 1,510.9 | ||||||
| Machinery and equipment | 2,902.1 | 2,700.4 | ||||||
| Accumulated depreciation | (2,341.5 | ) | (2,244.6 | ) | ||||
| Property, plant and equipment, net | 2,503.0 | 2,248.4 | ||||||
| Operating lease right-of-use assets | 271.0 | 231.6 | ||||||
| Goodwill | 2,170.9 | 2,111.1 | ||||||
| Intangible assets, net | 1,031.5 | 981.1 | ||||||
| Cash surrender value of life insurance policies, net | 29.8 | 43.8 | ||||||
| Other long-term assets | 82.1 | 92.5 | ||||||
| Total assets | $ | 10,300.8 | $ | 10,480.3 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 440.9 | $ | 410.3 | ||||
| Accrued expenses | 132.8 | 118.5 | ||||||
| Accrued compensation and retirement benefits | 194.1 | 213.9 | ||||||
| Accrued insurance costs | 45.1 | 44.4 | ||||||
| Current maturities of long-term debt | 399.5 | 0.3 | ||||||
| Current maturities of operating lease liabilities | 60.1 | 56.2 | ||||||
| Total current liabilities | 1,272.5 | 843.6 | ||||||
| Long-term debt | 867.8 | 1,141.9 | ||||||
| Operating lease liabilities | 210.8 | 178.9 | ||||||
| Long-term retirement benefits | 29.1 | 25.1 | ||||||
| Other long-term liabilities | 57.6 | 64.0 | ||||||
| Deferred income taxes | 501.8 | 494.0 | ||||||
| Total liabilities | 2,939.6 | 2,747.5 | ||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
| Preferred stock, $0.001 par value: 5,000 shares authorized; none issued or outstanding | — | — | ||||||
| Common stock and additional paid-in capital, $0.001 par value and 200,000 shares authorized Issued and outstanding shares—54,119 at September 30, 2024 and 57,271 at December 31, 2023 | 0.1 | 0.1 | ||||||
| Retained earnings | 7,433.5 | 7,798.9 | ||||||
| Accumulated other comprehensive loss | (83.1 | ) | (76.7 | ) | ||||
| Total Reliance stockholders’ equity | 7,350.5 | 7,722.3 | ||||||
| Noncontrolling interests | 10.7 | 10.5 | ||||||
| Total equity | 7,361.2 | 7,732.8 | ||||||
| Total liabilities and equity | $ | 10,300.8 | $ | 10,480.3 | ||||
| * Derived from audited financial statements. | ||||||||
| RELIANCE, INC. | ||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in millions) | ||||||||
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 772.0 | $ | 1,066.7 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 198.1 | 182.5 | ||||||
| Stock-based compensation expense | 43.0 | 48.4 | ||||||
| Other | 5.0 | 7.5 | ||||||
| Changes in operating assets and liabilities (excluding effect of businesses acquired): | ||||||||
| Accounts receivable | (51.9 | ) | (102.0 | ) | ||||
| Inventories | (52.3 | ) | (113.5 | ) | ||||
| Prepaid expenses and other assets | 105.7 | 91.1 | ||||||
| Accounts payable and other liabilities | (63.1 | ) | (35.0 | ) | ||||
| Net cash provided by operating activities | 956.5 | 1,145.7 | ||||||
| Investing activities: | ||||||||
| Acquisitions, net of cash acquired | (366.7 | ) | (24.1 | ) | ||||
| Purchases of property, plant and equipment | (319.7 | ) | (358.6 | ) | ||||
| Other | 13.0 | 14.9 | ||||||
| Net cash used in investing activities | (673.4 | ) | (367.8 | ) | ||||
| Financing activities: | ||||||||
| Net short-term debt repayments | — | (2.2 | ) | |||||
| Proceeds from long-term debt borrowings | 663.0 | — | ||||||
| Principal payments on long-term debt | (538.0 | ) | (505.7 | ) | ||||
| Cash dividends and dividend equivalents | (188.5 | ) | (179.3 | ) | ||||
| Share repurchases | (951.3 | ) | (239.2 | ) | ||||
| Taxes paid related to net share settlement of restricted stock units | (29.6 | ) | (41.3 | ) | ||||
| Other | (4.3 | ) | (3.0 | ) | ||||
| Net cash used in financing activities | (1,048.7 | ) | (970.7 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | — | (3.7 | ) | |||||
| Decrease in cash and cash equivalents | (765.6 | ) | (196.5 | ) | ||||
| Cash and cash equivalents at beginning of year | 1,080.2 | 1,173.4 | ||||||
| Cash and cash equivalents at end of the period | $ | 314.6 | $ | 976.9 | ||||
| Supplemental cash flow information: | ||||||||
| Interest paid during the period | $ | 27.7 | $ | 32.5 | ||||
| Income taxes paid during the period, net | $ | 197.1 | $ | 305.2 | ||||
| RELIANCE, INC. | ||||||||||||||||||||||||
| NON-GAAP RECONCILIATION | ||||||||||||||||||||||||
| (in millions, except per share amounts) | ||||||||||||||||||||||||
| Net Income | Diluted EPS | |||||||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | |||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||||||
| Net income attributable to Reliance | $ | 199.2 | $ | 267.8 | $ | 295.0 | $ | 3.61 | $ | 4.67 | $ | 4.99 | ||||||||||||
| Restructuring charges | 2.1 | 0.4 | 1.0 | 0.03 | 0.01 | 0.02 | ||||||||||||||||||
| Non-recurring income of acquisitions | (1.6 | ) | (2.0 | ) | — | (0.03 | ) | (0.03 | ) | — | ||||||||||||||
| Non-recurring settlement charges | 0.5 | — | — | 0.01 | — | — | ||||||||||||||||||
| Debt restructuring charge | 1.5 | — | — | 0.03 | — | — | ||||||||||||||||||
| Income tax (benefit) expense related to above items | (0.6 | ) | 0.4 | (0.3 | ) | (0.01 | ) | — | (0.01 | ) | ||||||||||||||
| Non-GAAP net income attributable to Reliance | $ | 201.1 | $ | 266.6 | $ | 295.7 | $ | 3.64 | $ | 4.65 | $ | 5.00 | ||||||||||||
| Net Income | Diluted EPS | |||||||||||||||||||||||
| Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| Net income attributable to Reliance | $ | 769.9 | $ | 1,063.2 | $ | 13.55 | $ | 17.92 | ||||||||||||||||
| Restructuring charges | 2.8 | 1.0 | 0.04 | 0.02 | ||||||||||||||||||||
| Non-recurring income of acquisitions | (3.6 | ) | — | (0.06 | ) | — | ||||||||||||||||||
| Non-recurring settlement charges | 5.1 | — | 0.09 | — | ||||||||||||||||||||
| Debt restructuring charge | 1.5 | — | 0.03 | — | ||||||||||||||||||||
| Gains related to sales of non-core assets | — | (4.8 | ) | — | (0.08 | ) | ||||||||||||||||||
| Income tax (benefit) expense related to above items | (1.4 | ) | 0.9 | (0.02 | ) | 0.01 | ||||||||||||||||||
| Non-GAAP net income attributable to Reliance | $ | 774.3 | $ | 1,060.3 | $ | 13.63 | $ | 17.87 | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Pretax income | $ | 260.5 | $ | 349.7 | $ | 388.0 | $ | 1,006.4 | $ | 1,407.4 | ||||||||||||||
| Restructuring charges | 2.1 | 0.4 | 1.0 | 2.8 | 1.0 | |||||||||||||||||||
| Non-recurring income of acquisitions | (1.6 | ) | (2.0 | ) | — | (3.6 | ) | — | ||||||||||||||||
| Non-recurring settlement charges | 0.5 | — | — | 5.1 | — | |||||||||||||||||||
| Debt restructuring charge | 1.5 | — | — | 1.5 | — | |||||||||||||||||||
| Gains related to sales of non-core assets | — | — | — | — | (4.8 | ) | ||||||||||||||||||
| Non-GAAP pretax income | $ | 263.0 | $ | 348.1 | $ | 389.0 | $ | 1,012.2 | $ | 1,403.6 | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Gross profit - LIFO | $ | 1,006.3 | $ | 1,086.0 | $ | 1,077.0 | $ | 3,220.5 | $ | 3,525.7 | ||||||||||||||
| Amortization of inventory step-down | (1.6 | ) | (2.0 | ) | — | (3.6 | ) | — | ||||||||||||||||
| Restructuring charges | 1.7 | — | — | 1.7 | — | |||||||||||||||||||
| Non-GAAP gross profit | 1,006.4 | 1,084.0 | 1,077.0 | 3,218.6 | 3,525.7 | |||||||||||||||||||
| LIFO income | (50.0 | ) | (50.0 | ) | (45.0 | ) | (150.0 | ) | (105.0 | ) | ||||||||||||||
| Non-GAAP gross profit - FIFO | $ | 956.4 | $ | 1,034.0 | $ | 1,032.0 | $ | 3,068.6 | $ | 3,420.7 | ||||||||||||||
| Gross profit margin - LIFO | 29.4 | % | 29.8 | % | 29.7 | % | 30.1 | % | 30.7 | % | ||||||||||||||
| Amortization of inventory step-down as a % of sales | — | — | — | — | — | |||||||||||||||||||
| Restructuring charges as a % of sales | — | — | — | — | — | |||||||||||||||||||
| Non-GAAP gross profit margin | 29.4 | % | 29.8 | % | 29.7 | % | 30.1 | % | 30.7 | % | ||||||||||||||
| LIFO income as a % of sales | (1.5 | %) | (1.4 | %) | (1.2 | %) | (1.4 | %) | (0.9 | %) | ||||||||||||||
| Non-GAAP gross profit margin - FIFO | 27.9 | % | 28.4 | % | 28.5 | % | 28.7 | % | 29.8 | % | ||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2024 | 2023 | ||||||||||||||||||||||
| Total debt | $ | 1,276.4 | $ | 1,151.4 | $ | 1,151.7 | ||||||||||||||||||
| Less: unamortized debt discount and debt issuance costs | (9.1 | ) | (7.8 | ) | (9.8 | ) | ||||||||||||||||||
| Carrying amount of debt | 1,267.3 | 1,143.6 | 1,141.9 | |||||||||||||||||||||
| Less: cash and cash equivalents | (314.6 | ) | (350.8 | ) | (976.9 | ) | ||||||||||||||||||
| Net debt | $ | 952.7 | $ | 792.8 | $ | 165.0 | ||||||||||||||||||
| Twelve Months Ended | ||||||||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2024 | 2023 | ||||||||||||||||||||||
| Net income | $ | 1,045.4 | $ | 1,141.5 | $ | 1,418.0 | ||||||||||||||||||
| Depreciation and amortization | 261.0 | 253.7 | 243.9 | |||||||||||||||||||||
| Interest expense | 40.1 | 38.9 | 45.8 | |||||||||||||||||||||
| Income taxes | 294.3 | 325.7 | 436.0 | |||||||||||||||||||||
| EBITDA | $ | 1,640.8 | $ | 1,759.8 | $ | 2,143.7 | ||||||||||||||||||
| Net debt-to-EBITDA | 0.6x | 0.5x | 0.1x | |||||||||||||||||||||
| Total debt-to-EBITDA | 0.8x | 0.7x | 0.5x | |||||||||||||||||||||
| Reliance, Inc.’s presentation of non-GAAP pretax income, net income and EPS over certain time periods is an attempt to provide meaningful comparisons to the Company's historical performance for its existing and future stockholders. Adjustments include restructuring charges, non-recurring income of its acquisitions, non-recurring settlement charges, non-recurring expenses related to the amendment of its credit agreement, and gains on sales of non-core property, plant, and equipment, which make comparisons of the Company’s operating results between periods difficult using GAAP measures. Reliance, Inc.’s presentation of gross profit margin - FIFO, which is calculated as gross profit plus LIFO expense (or minus LIFO income) divided by net sales, is presented in order to provide a means of comparison amongst its competitors who may not use the same inventory valuation method. Please see footnote 1 below for additional information on the Company’s gross profit and gross profit margin. Reliance, Inc. presents net debt- and total debt-to-EBITDA as a measurement of leverage utilized by management to monitor its debt levels in relation to its operating cash flow for which it utilizes EBITDA as a proxy. | ||||||||||||||||||||||||||||||||
| Footnotes | ||||||||||||||||||||||||||||||||
| 1 Gross profit, calculated as net sales less cost of sales, and gross profit margin, calculated as gross profit divided by net sales, are non-GAAP financial measures as they exclude depreciation and amortization expense associated with the corresponding sales. About half of Reliance's orders are basic distribution with no processing services performed. For the remainder of its sales orders, Reliance performs “first-stage” processing, which is generally not labor intensive as it is simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from cost of sales. Therefore, Reliance’s cost of sales is substantially comprised of the cost of the material it sells. Reliance uses gross profit and gross profit margin, as shown, as measures of operating performance. Gross profit and gross profit margin are important operating and financial measures, as their fluctuations can have a significant impact on Reliance's earnings. Gross profit and gross profit margin, as presented, are not necessarily comparable with similarly titled measures for other companies. | ||||||||||||||||||||||||||||||||
| 2 See accompanying Non-GAAP Reconciliation. Certain percentages may not calculate due to rounding. | ||||||||||||||||||||||||||||||||
| 3 Free cash flow is calculated as cash provided by operations reduced by capital expenditures. | ||||||||||||||||||||||||||||||||
| 4 Net debt-to-total capital is calculated as carrying amount of debt (net of cash) divided by total Reliance stockholders’ equity plus carrying amount of debt (net of cash). | ||||||||||||||||||||||||||||||||
| 5 Net debt- and total debt-to-EBITDA are calculated as carrying amount of debt (net of cash) or total debt divided by earnings before interest, income taxes, depreciation, amortization and impairment of long-lived assets (“EBITDA”) for the most recent twelve months. | ||||||||||||||||||||||||||||||||